Jordan offers strong business links

Chris Jordan has spent the past year consulting with business over changes to the corporate tax system as head of the federal government’s business tax working group.

It’s a habit that business hopes he will continue, as he takes up his role at the helm of the Australian Taxation Office in January.

“It’s critical that the ATO understands what’s happening in the business community and, in particular, the importance of greater clarity and timely advice," said Ai Group chief executive
Innes Willox
.

Mr Willox said business, in turn, had to engage with tax administration and understand the ATO’s priorities. Business expects the tax commissioner-in-waiting, a former partner of big-four accounting firm KPMG, to bring more of a commercial approach to the ATO.

“As much as they say they are commercially focused and run, we see plenty of the opposite in practice," said Institute of Public Accountants senior tax adviser Tony Greco. “At the end of the day they have got a bit of a vice for collecting as much money as they can."

Head of the Corporate Tax Association,
Frank Drenth
, said that while tax officers were approachable, they had an “ATO-centric view of the world".

“That’s no particular criticism of any groups or any people," he said. “The CTA and, I think, a number of other organisations have had the view for some time that the Tax Office could benefit from a bit of a cultural shift."

The Inspector-General of Taxation, Ali Noroozi, recommended a structural shake-up of the ATO at the tax forum last October. That included the appointment of two new second commissioners – there are now three – from the private sector.

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Mr Jordan has dealt with businesses in a policy consultation capacity on the Board of Taxation, which he has chaired since June last year, and as head of the government’s business tax working group, which this year failed to find ways to fund a corporate tax rate cut.

Institute of Chartered Accountants general manager of leadership and quality, Yasser El-Ansary, said that Mr Jordan understood the difficulties faced by the federal government.

“He will clearly have a deep understanding of what role the ATO plays in helping to deliver revenue," he said.

Mr El-Ansary doubted the ATO was in danger of becoming too cosy with business.

Mr Jordan could tread the fine line between the commercial realities of the business sector and the ATO’s priorities, he said.

“He’s been close enough to the machinery of the government for a long time now. He’s in the right position to be fairly objective."

Australian Chamber of Commerce and Industry director of economics and industry policy, Greg Evans, said he was confident Mr Jordan would continue the efforts of the current commissioner Michael D’Ascenzo to engage with business.

In particular, Mr D’Ascenzo allowed more flexible payment terms for the tax debts of small businesses after the global fiscal crisis.

“It gave them some fairly significant cash flow relief that they otherwise weren’t getting," he said.

Tax Institute president Ken Schurgott said that he hoped the appointment would strengthen existing ATO ties with the private sector, and “import significant private sector management learnings into ATO operations".

KPMG Australia CEO Geoff Wilson said that Mr Jordan was promoted to chair of NSW after his success advising some of Australia’s major corporations, “where he served with distinction for the past decade".

“We are all very proud of Chris’ appointment."

Clayton Utz partner Niv Tadmore said Mr Jordan had good people skills, which would help him to understand the ATO’s culture. But he faced a hard task, Mr Tadmore said.

“He’s doing it at a very difficult time when there is so much pressure to raise revenue."

The CTA’s Mr Drenth, who was on the working group with Mr Jordan, said he did not want to put undue pressure on Mr Jordan by setting out demands or expectations.

“He’ll have his own ideas about what he wants to do. I’m sure he won’t be turning the place upside down."